Santander to increase the rate on its direct Isa saver to 1.6% from Monday 17th March

13th March 2014

Santander is increasing the rate on instant access on its direct Isa saver to 1.60 per cent AER tax free rate (variable) from Monday 17th March.

The direct Isa saver offers a 1.60 per cent AER tax free (variable) for 12 months, Direct ISA Saver allows access via cash card, telephone and internet banking. The bank says that existing customers who have already opened one of these accounts will see the rate increased automatically.

For ISA savers seeking a guaranteed return on their existing ISA money, Santander will continue to offer its 2 Year Fixed Rate ISA paying a competitive 2.00 per cent AER tax free (fixed). New and existing Santander 1|2|3 Current Account, 1|2|3 Credit Card customers, and all Santander Select customers, will benefit from an exclusive 2 Year Fixed Rate ISA, paying a market-leading 2.30 per cent AER tax free (fixed). Both the 2 Year Fixed Rate ISAs and Direct ISA Saver require a minimum opening balance of £500.

Richard Al-Dabbagh, Head of Savings, Santander UK said: “Delivering value-for-money products to help families make the most of their cash is a key priority for Santander. This increase will help ensure customers can benefit from one of the most competitive instant access variable rate ISAs in the market.”